Corn & Soybeans Take Center Stage
Wheat was in the spotlight last week, but corn and soybeans took center stage in Thursday’s grain trade. Are these markets poised for a bigger rally? Oliver Sloup was on RFD-TV sharing his thought on what could be next for grain prices.
https://www.youtube.com/watch?v=ZfNc-rVNpyo
Volatility & Opportunity
The grain markets appear to be waking up from an extended winter hibernation. We wouldn’t be surprised to see the volatility rise from here which could present some great trading opportunities!
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Corn
Technicals (July)
July corn futures finished yesterday’s trade right at the upper end of our significant resistance pocket at 460. The market is chewing through that in the overnight and early morning trade, if that strength can hold through the floor open, we could see an extension towards 471-474 3/4. Previous resistance from 456 1/2-460 will now act as our pivot pocket. A break and close back below there would start to neutralize some of the bullishness that has taken place over the last three sessions.
Bias: Bullish
Resistance: 471-474 3/4***
Pivot: 456 1/2-460
Support: 448-451**, 441 3/4-444 1/2***
Soybeans
Technicals (July)
July soybean futures broke out above our first resistance pocket yesterday, which we defined as 1182 1/4-1186 1/4. In yesterday’s report we wrote: “A close above this pocket could spark a move back to and potentially above the technically and psychologically significant $12.00 level.”. This is coincidently (or not) where the market traded to at the close. As mentioned in our interview with RFD-TV and AgriTalk yesterday afternoon, if the Bulls can defend the strength, it opens the door to the next resistance level which comes in from 1220-1225. Consecutive closes above that pocket and things could get interesting to the upside.
Soybean meal also popped on our radar this week and we were looking at ways to play that with clients via options. If you’d like to hear what we are looking at there, give our trade desk a shout: 312-278-0500.
Bias: Neutral/Bullish
Resistance: 1220-1225*, 1252-1259
Pivot: 1199 1/2-1204****
Support: 1182 1/4-1186 1/4*, 1169 1/4-1173 1/2
Wheat
Technicals (July)
Chicago wheat futures had a choppy trading day yesterday but were able to defend our pivot pocket at the close, keeping it intact from 600-605. The market is moving back north and is on the verge of taking another shot at resistance. If the Bulls can chew through and close above 621 1/4-626 3/4 it could spark a move back to the December highs, north of 650.
Bias: Bullish
Resistance: 621 1/4-626 3/4, 635 1/4-639, 655-666
Pivot: 600-605
Support: 590-595, 565-570, 550-552 1/4**
Check out this Article: Breakout Alert: Grains - Blue Line Futures
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